People watching the big-beer industry (think: Miller Lite and Coors Light) expect a 7.1% decline in mass-market beer sales—$2.1 billion annually—as more states legalize cannabis:
"There's a ton of overlap in marijuana and domestic beer consumption among younger college males," says Rick Maturo, co-founder of Cannabiz Consumer Group, an Inverness-based research company. "This is the group that drinks beer at a heavier volume and is most likely to cut back if cannabis is legally available."
He says 27 percent of beer drinkers say they've already substituted marijuana for beer or would do so if the drug were legalized in their state. Other research predicts an even worse dip: Alcoholic beverage sales fell 15 percent after the passage of medical marijuana laws in a number of states, according to researchers at the University of Connecticut and Georgia State University.
Sales of Coors Light and Miller Lite were down 3.6 percent and 1.6 percent, respectively, through the third quarter from a year earlier, according to Nielsen data from Beer Marketer's Insights. In October, Molson Coors, MillerCoors' Denver-based parent, said its U.S. beer sales dropped nearly 3 percent in the previous quarter. And between 2010 and 2016, the light category as a whole saw volumes decline by 14 percent.
What's worse: The decline of Miller Lite and Coors Light is nearly impossible to offset through other sales—even as the brewer's Leinenkugel's and Blue Moon brands post robust results—because the two light beers represent more than half of MillerCoors' overall sales volume. They're "a major driver of our profitability," CEO Gavin Hattersley acknowledged on MillerCoors' third-quarter earnings call recently.
Two things: first, pot was criminalized in the wake of the 21st Amendment exactly for this reason. Second, I'm not sorry to see declines in the sales of horrible products.